COSTS for working households are £7,800 higher each year due to rising inflation, a Labour analysis of official figures has revealed.

The rise comes on top of the £870 families will be hit under the Tory tax double whammy of rising council tax and frozen income tax thresholds, according to the party, which has rejected Prime Minister Rishi Sunak’s claims that Britain is turning a corner on the economy.

According to official government statistics, in 2019-20 an average household with two earners was spending £34,159 annually on items included within consumer price inflation (CPI).

With the CPI index, which includes utilities, food, insurance and petrol, soaring by 22 per cent between 2019-20 and March 2024, the cost of maintaining the same household’s regular expenses has increased by £150 a week or £7,800 per year, Labour said.

Shadow chancellor Rachel Reeves said: “£150 might not mean a lot to the Prime Minister, but for ordinary working people it means cutting back on meals out or family holidays, and in many cases having to watch every penny as essentials take up even more of their income.”

Ms Reeves has warned Mr Sunak to scrap his unfunded £46 billion commitment to abolish national insurance contributions that “risk emptying the state pension pot, and causing more pain for pensioners who’ve worked hard all their lives for a decent retirement.”

“At the end of the month, people should be able to see that their hard work has paid off,” she said.

“Thanks to Tory chaos, working people are worse off.”

The government was approached for comment.